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Politics : Ask Michael Burke

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To: Eggolas Moria who wrote (74765)	1/28/2000 3:28:00 PM
From: Knighty Tin	Read Replies (2) of 132070

Gary, Neither Gateway nor Dell moved aggressively in the fastest growing part of the pc business. I have many thoughts on the idea. Duh! <g> One is that the shipping and handling and marketing expense and overhead of many sorts doesn't lend these cheaper boxes to the direct model. In other words, it makes sense to pay $60 to ship a box and pay for ads on tv and pay somebody to answer the phone and take 20 minuts with a customer when you are selling a $2000 box. But when you are selling a $500 box, there isn't enough margin to handle it. This may be where the direct model becomes totally inefficient.

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